Business case
A private operator entered into a public-private partnership with a public healthcare institution to operate and maintain two hospitals in South America. A dispute arose over competing economic interpretations of the formula used to calculate the operator’s annual remuneration, with the operator seeking approximately USD 100 million in additional compensation.
The work made a technical indexation dispute intelligible to the Tribunal. Following the expert evidence and cross-examination, the Tribunal had a practical understanding of why inflation and exchange-rate protection had to be analysed together, because remuneration was received in USD while most operating costs were incurred in another currency.
We analyzed the remuneration formula through contractual risk allocation, macroeconomic indexation and hospital operating economics. Our experts also assessed how inflation and exchange-rate movements interacted over time, tested each party’s interpretation against the contract’s economic balance and quantified the resulting adjustment.